Boeing Expects Charge, High Costs In Q2 Due To 737 MAX Grounding – Quick Facts

Boeing (BA) expects to record an after-tax charge of $4.9 billion or $8.74 per share related to an estimate of potential concessions and other considerations to customers for disruptions related to the 737 MAX grounding and associated delivery delays.

Boeing expects this charge to result in a $5.6 billion reduction of revenue and pre-tax earnings in the second quarter.

Boeing also stated that estimated costs to produce the aircraft in the 737 accounting quantity increased by $1.7 billion in second quarter, primarily due to higher costs associated with a longer than expected reduction in the production rate.

The company expects increased 737 program costs to reduce the margin of the 737 program in the second quarter and in future quarters.

Boeing said it has assumed, for purposes of the second-quarter financial results, that regulatory approval of 737 MAX return to service in the U.S. and other jurisdictions begins early in the fourth quarter 2019

“We remain focused on safely returning the 737 MAX to service,” said Boeing Chairman, President and CEO Dennis Muilenburg.

AB InBev stock up on report it may sell assets after scrapping Asia IPO plan

• Anheuser-Busch InBev is mulling over the sale of several business units, The Wall Street Journal reported.
• The Bud Light brewer recently called off an initial public offering of its Asian business.
• The company had planned to use some proceeds from the IPO to reduce its debt.

Bud Light brewer Anheuser-Busch InBev is thinking about selling off business units in South Korea, Australia and Central America, The Wall Street Journal reported Thursday.

Shares of the company jumped less than 2% in afternoon trading on the report.

AB InBev called off the initial public offering of its Asian business on Friday, citing in part"the prevailing market conditions." The proceeds from the IPO would have helped the company reduce its debt, a result of deal-making that made it the world's largest brewer.

Citing people familiar with the matter, the Journal reported that the company is now hoping to raise at least $10 billion from selling off assets, including some that were a major part of the called-off IPO.

The company is also considering cutting its dividend again after slashing it last year, but some board members are reluctant to do so, the people told the Journal.

AB InBev did not immediately respond to a request for comment from CNBC.

Read more about what business units AB InBev is considering selling here.

SEC freezes assets of alleged fraudsters targeting elderly

The Securities and Exchange Commission imposed an emergency assets freeze on Thursday related to charges that two individuals are running an alleged pump-and-dump scheme targeting elderly retail investors. According to the SEC’s complaint, Florida resident Garrett M. O’Rourke and Maryland resident Michael J. Black allegedly worked together between 2016 and 2018 to sell shares in several microcap companies to investors, including elderly retail investors, using high-pressure stock promotional campaigns. The SEC alleges that, as part of the scheme, O’Rourke aggressively touted the companies to prospective investors through unsolicited cold calls during which he repeatedly lied about his association with legitimate financial institutions and the prospects of the microcap companies. John T. Dugan, Associate Director of Enforcement in the SEC’s Boston Regional Office, said: "Investors should beware of parties using the types of sales techniques alleged in our complaint, including unsolicited calls and high-pressure sales tactics."

Red Robin shares soar 17% on resubmitted bid from Vintage Capital

Shares of Red Robin Gourmet Burgers RRGB, +1.19% jumped 17% in extended trading Thursday after it confirmed it has received an unsolicited proposal from private-equity firm Vintage Capital Management LLC to acquire all of the outstanding common shares of Red Robin for $40 per share in cash. Last month, Red Robin turned down a request for a special meeting with stockholders initiated by Vintage, which already owns a piece of the restaurant chain.

Red Robin Shares Jump 17% On Unsolicited Bid From Vintage Capital

Red Robin Gourmet Burgers, Inc. (RRGB) Thursday said it received an unsolicited takeover offer of $40 per share from Vintage Capital Management, LLC. Shares of Red Robin jumped 17% in extended trading hours on the news.

Red Robin said its board are “committed to acting in the best interests of the company and all shareholders.” Red Robin Board will carefully review and consider the proposal to determine the best interests of shareholders.

Evercore is serving as financial advisor to Red Robin and Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as its legal counsel.

Last month, Red Robin had turned down a request for a special meeting with stockholders initiated by Vintage, which already owns a stake in the restaurant chain.

RRGB closed Thursday’s trading at $30.60, up $0.36 or 1.19%, on the Nasdaq. The stock further gained $5.15 or 16.83% in the after-hours trading.

Software AG Q2 Revenues Up 2%

Germany-based Software AG (STWRY.PK) Thursday reported second-quarter revenues of 210 million euros, up by 2.1% from 205.7 million euros last year.

The company said the revenue mix of the business lines varied, as Software AG’s Cloud & IoT revenue increased 143.6% in the quarter, while revenues from integration software were 97.5 million euros, lower than expected revenues of 104.3 million euros.

Moving ahead, Software AG’s has adjusted its 2019 outlook for DBP revenue growth to a new corridor of -6% to 0% from previously 3% – 7% at constant currency.